Waqf Property | Leasing | Board Sanction

Deed of Lease for Waqf Property

Updated specimen lease deed for immovable waqf property, incorporating the current requirements of the 1995 central waqf law, the Waqf Properties Lease Rules, 2014 as amended, registration law and practical protections for the Waqf Board, Mutawalli and lessee.

Current statutory framework: the central law is now titled the Unified Waqf Management, Empowerment, Efficiency and Development Act, 1995. Leasing of waqf immovable property is specifically controlled by Sections 51 and 56 and by the Waqf Properties Lease Rules, 2014, as amended.

Legal requirements for leasing waqf property

Prior sanction of Waqf BoardSection 51 provides that a lease of immovable waqf property is void unless effected with the prior sanction of the Board.
Special protected propertiesSection 51 restricts leasing of mosques, dargahs, khanqahs, graveyards and imambaras, subject only to the limited statutory exception stated in the Act.
Maximum lease periodSection 56 makes a lease exceeding thirty years void. Agricultural waqf land cannot be leased for more than three years.
Long-term permitted purposesA lease up to thirty years may be granted for commercial activity, education or health purposes with State Government approval in accordance with the Act and Central Rules.
Do not use a private rent agreement alone. A lease of waqf property cannot safely be treated as an ordinary landlord-tenant transaction. Board sanction, prescribed leasing procedure, bidding/reserve-rent requirements where applicable, State Government approval for specified long-term leases, registration and State stamp requirements must be satisfied.

Waqf Properties Lease Rules

The Waqf Properties Lease Rules, 2014 regulate proposals, public notice/bidding, reserve price, security deposit, rent, reporting, renewal and other lease conditions. The Rules were amended in 2015 and again in 2020.

Among the important safeguards, the Rules prohibit the lessee from assigning, sub-leasing, pledging or transferring the lease or parting with possession, subject to the specific governmental-agency proviso. They also provide that lease agreements must not contain an automatic-renewal clause. A fresh renewal must follow the applicable statutory process.

For certain commercial, educational or health uses, the Rules permit long-term leases extending up to thirty years with State Government approval. The actual permissible duration and process must be checked against the current Rules and the Board's sanction order.

Registration and stamp duty

Where the lease is from year to year, exceeds one year, or reserves yearly rent, Section 107 of the Transfer of Property Act, 1882 and Section 17 of the Registration Act, 1908 ordinarily require a registered instrument. State stamp duty and registration charges vary according to the location, term, rent, premium and applicable State amendments.

The Board sanction, approved lease terms, property schedule, bidding/selection record where applicable, rent/security terms and all required governmental approvals should be consistent with the instrument presented for registration.

Updated deed of lease of waqf property

Replace all placeholders with the exact particulars contained in the Waqf Board sanction and applicable tender/bid documents. The deed should not grant a term, user, renewal right, transfer right or financial concession wider than the approval actually granted.

DEED OF LEASE OF WAQF PROPERTY

This Deed of Lease is executed on this ____ day of ____________, 20__ at ____________.

BETWEEN

Name of Mutawalli / authorised representative, acting for and on behalf of Name of Waqf, Waqf Registration No. ____________, having address at ____________________________________________, duly authorised under the governing waqf deed and by Waqf Board sanction/order dated ____________, hereinafter referred to as the "Lessor";

AND

Name of Lessee, an individual / partnership / LLP / company / institution having address or registered office at ____________________________________________, hereinafter referred to as the "Lessee".

Recitals

A. The property more particularly described in the Schedule is registered/recorded as waqf property of ________________ Waqf.

B. The Lessor is the duly appointed Mutawalli/authorised representative responsible for administration of the waqf property, subject to the supervision and directions of the competent Waqf Board.

C. The competent Waqf Board, by sanction/order No. ____________ dated ____________, approved the lease of the scheduled premises for commercial/educational/health/other lawful purpose for a period of ____________ at the approved rent and on the conditions contained in that order.

D. Where required by Section 56 and the applicable Rules, approval of the State Government dated ____________ has been obtained / the statutory condition applicable to the approved lease has been complied with.

E. The Lessee has inspected the property, the Waqf Board sanction and the material lease documents and agrees to take the premises strictly subject to the Act, Rules, sanction order and this deed.

NOW THIS DEED WITNESSES AS FOLLOWS:

1. Grant of lease. Subject to the Act, Rules and Board sanction, the Lessor leases to the Lessee the premises described in the Schedule together with such lawful access and common-use rights as are specifically approved.

2. Term. The lease shall commence on ____________ and expire on ____________, unless earlier determined in accordance with law and this deed. The term shall not exceed the period permitted by Section 56, applicable Rules or the sanction order.

3. Rent. The Lessee shall pay lease rent of Rs. ____________ per month/year, payable monthly/quarterly/annually in advance on or before ____________, without unauthorised deduction or set-off.

4. Rent revision. Rent shall be revised/escalated in the manner stated in the Waqf Board sanction, tender conditions and applicable Rules, namely: ____________________________________________________________.

5. Security deposit. The Lessee shall deposit Rs. ____________ as security in the manner required by the approved lease conditions and Rules. The deposit shall be dealt with only in accordance with those conditions.

6. Permitted use. The premises shall be used only for ________________________________. No change of user shall be made without every approval required by the Board, State/local authority and applicable law.

7. Public dues and utilities. The Lessee shall pay electricity, water, user charges, maintenance and such taxes, rates, cess and other outgoings as are allocated to the Lessee under the sanction/order and this deed.

8. Repairs and maintenance. The Lessee shall maintain the premises in good tenantable condition, subject to reasonable wear and tear, and shall not damage or permanently alter waqf property.

9. Alterations. No structural addition, demolition, redevelopment, permanent construction or material alteration shall be carried out without all prior approvals required under the Board sanction, municipal/building law and the governing waqf law.

10. No assignment or sub-lease. The Lessee shall not assign, sub-lease, pledge, mortgage, transfer the lease, part with possession or permit occupation by another person except where expressly permitted by the Act, Rules and sanction order. Nothing in this deed grants a right of further transfer contrary to the Waqf Properties Lease Rules.

11. No encumbrance. The Lessee shall not create any ownership claim, mortgage, charge or third-party interest over the waqf property and shall not represent itself as owner of the property.

12. Compliance with law. The Lessee shall comply with applicable municipal, fire, building, environmental, trade, labour, licensing and safety requirements connected with the permitted use.

13. Inspection. The Mutawalli, authorised officers of the Waqf Board and other competent statutory authorities may inspect the premises and relevant records on reasonable notice, except where urgent inspection is lawfully required.

14. Indemnity. The Lessee shall indemnify the Waqf and Lessor against reasonable loss, liability, statutory penalty or expense caused by the Lessee's unlawful use, breach of this deed or violation of approval conditions.

15. Default. Material default includes non-payment of rent, unlawful use, unauthorised transfer, material breach of sanction conditions, damage to waqf property or other breach permitting termination under the Act, Rules, Board sanction or this deed.

16. Notice and cure. Where the breach is legally capable of cure, the defaulting party shall be given such notice and cure opportunity as may be required by law, the Rules, sanction order and this deed.

17. Termination and re-entry. The lease may be terminated for a lawful material breach, expiry, statutory cancellation, surrender or any other ground authorised by law. Re-entry or recovery of possession shall be undertaken only through a legally permissible process.

18. No automatic renewal. This lease carries no automatic right of renewal. Any renewal or fresh lease shall be subject to the applicable Waqf Properties Lease Rules, bidding/approval process, rent revision and fresh sanction required by law.

19. Handover. On expiry or lawful termination, the Lessee shall vacate and deliver peaceful possession, remove permitted movable fixtures where allowed, clear dues and restore the premises as required by the approved lease conditions.

20. Waqf character unaffected. Nothing in this deed shall create ownership, permanent tenancy, adverse title or any interest inconsistent with the continuing character of the premises as waqf property.

21. Stamp duty and registration. This deed shall be appropriately stamped and registered where required. Stamp duty, registration charges and related expenses shall be borne by ________________, subject to applicable State law and the approved tender/sanction conditions.

22. Statutory override. If any clause is inconsistent with the governing Act, Waqf Properties Lease Rules, Waqf Board sanction, State Government approval or other mandatory law, the mandatory requirement shall prevail.

23. Jurisdiction. Disputes shall be dealt with by the Waqf Tribunal, court or other authority having jurisdiction under the governing law, depending upon the nature of the dispute.

SCHEDULE OF LEASED WAQF PROPERTY

Waqf name and registration No.: ____________________________
Property ID / Waqf property No.: ____________________________
Survey/Khasra/Plot/Municipal No.: ____________________________
Floor/unit/room(s): ____________________________
Area: ____________________________
Village/Town/District/State: ____________________________________________
North boundary: ________________
South boundary: ________________
East boundary: ________________
West boundary: ________________
Permitted use: ____________________________

IN WITNESS WHEREOF, the parties have executed this Deed of Lease on the date first written above.

FOR THE WAQF / LESSOR
Name: ________________
Capacity: Mutawalli / Authorised Representative
Signature: ________________

LESSEE
Name / authorised signatory: ________________
Signature: ________________

Witnesses

1. Name: ________________ Address: ________________________ Signature: ________

2. Name: ________________ Address: ________________________ Signature: ________

Waqf property lease checklist

  1. Verify that the property is recorded/registered as waqf property and identify the competent Board.
  2. Confirm the Mutawalli's authority and obtain the Board's prior sanction before execution.
  3. Check whether bidding, public notice, reserve-price and security-deposit requirements under the Lease Rules apply.
  4. Confirm the permissible purpose and maximum term under Section 56 and the current Rules.
  5. For qualifying long-term commercial, education or health leases, confirm State Government approval requirements.
  6. Do not insert an automatic-renewal clause or unrestricted assignment/subletting right.
  7. Match the deed exactly with the approved rent, escalation, deposit, user and property particulars.
  8. Comply with State stamp duty, compulsory registration and local building/use regulations.

Official legal resources

The lease of waqf property is statutory and approval-driven. State Waqf Board procedures, tender conditions, State stamp law, registration law and property-use regulations should be checked before execution.